Nike Corporation: Strategic Plan Case Study
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Assignment one
1- Sustainable competitive advantage
Nike corporations sustainable competitive advantage begins with the manufacturing of their products. Nike is a top athletic brand that has been very successful for a long time. Much of their success comes from their profit. They are able to make large profits because when it comes to manufacturing things such as shoes and apparel, everything is manufactured outside of the United States in factories inlaces such as China, Vietnam, and Indonesia. About 98% of Nike brand footwear was manufactured in these different countries, saving the company lots of costs because employees in different countries dont make as much in salary. The Nike brand has also sustained a competitive advantage over other corporations because of their advertising. They use the worlds best athletes to support their brand and wear their products, which makes the rest of the regular population need what the top competitors have. Lastly Nike’s competitive advantage can also be seen in their technologies and what they offer. Nike is an athletic brand but they have managed to partner up with Apple in order to design shoes with an iPod built in. Nike is successful because they are constantly expanding and looking for new and better ways to make athletic wear.
2- 3 questions pages 10-12
1-Strategy fits Nike’s situation very well. There are many very competitive athletic brands out there such as adidas, reebok, under armor, and puma, and each brand supplies its customers with reliable products. Therefore strategy is a key factor in any of their success. Nike has to find new and creative ways to get the publics attention, they use strategies like having top athletes in the world wear their brand and support them. Without the use of strategies Nike would fall behind the rest of the athletic apparel brands.
2-Yes, I believe that Nike’s strategies are helping them achieve their sustainable competitive advantage. I think that most people once they find a brand that is trustworthy that they like they tend to stick with the same brand. Nike uses many different strategies such as advertising and the constant developing of new products to keep their customers loyal and interested.